Arizona’s geographic position acts as a natural gateway between Asia and Mexico, enabling faster handoffs across the supply chain. The state has gained prominence as a logistics hub for the semiconductor supply chain and for cross-border trade with Mexico.
Abundant land and newer infrastructure allow rapid development of fabs, warehouses, and logistics facilities. Due to Arizona’s business-friendly environment, many companies are relocating their logistics facilities from high-cost California locations to Arizona, driving a warehouse-building boom in the state’s central and western regions. Flat terrain and modern construction make it easier to scale logistics operations quickly. At the same time, the lower cost of living attracts and retains a skilled, high-tech labor force compared to California.
One more factor in the Copper State’s favor: lower risk of supply chain disruption. The state’s lack of natural and weather-related disasters, such as earthquakes, hurricanes, blizzards and tornadoes, makes Arizona an attractive location for companies that require uninterrupted access to employees and markets year-round. As more production shifts to a China Plus One strategy, Arizona is well positioned to serve as a staging point for in-bond freight arriving from Asia and destined for Mexico’s manufacturing centers.
Robust Global Logistics Connections
In 2023, the latest year for which data is available, 182 million tons of freight valued at $297 billion flowed through Arizona in all modes.
Mexico is by far Arizona’s largest trading partner, receiving $8.9 billion in exports in 2024, up 12% from 2023. More than one quarter (27.5%) of Arizona’s exports flow to Mexican markets. In the other direction, Arizona imported $11.6 billion worth of goods from Mexico.
To handle this freight flow, Arizona has six ports of entry from Mexico and six international airports, including the SkyBridge Arizona at Phoenix-Mesa Gateway Airport, the first and only inland international air logistics hub and joint U.S.-Mexico customs processing facility.
Arizona/Mexico Ports of Entry
- Douglas
- Lukeville
- Naco
- Nogales
- San Luis
- Sasabe
Arizona International Airports
- Phoenix Sky Harbor
- Tucson International
- Phoenix-Mesa Gateway
- Yuma International
- Nogales International
- Laughlin/Bullhead International
Phoenix Sky Harbor Airport, Arizona’s biggest and busiest airport, is increasingly used for direct international flights from Asia, bypassing congestion at Los Angeles-area airports. Airlines such as China Airlines and Starlux support time-sensitive shipments of semiconductors, including spare parts.
Interstates like I-10 and I-19, as well as 10 rail carriers, including Class 1 railway Union Pacific and BNSF, add to Arizona’s value as a critical trade corridor.
In addition to proximity to Mexico, Arizona is adjacent to California and Texas, serving as a hub for these major markets and connecting to the entire western region of the U.S. Arizona offers access to more than 86 million U.S. consumers within one day’s drive.
Crossroads of the Semiconductor Supply Chain
In 1979, Intel opened its first location in the state, sparking the semiconductor ecosystem that has since spread across the state.
Today, Arizona leads the nation in semiconductor investment, with more than 60 supplier expansions, and, nearly 50 years later, it is still home to Intel’s largest manufacturing site. Overall, more than 75 semiconductor companies operate in the region, including suppliers like EMD Electronics and ASM.
However, the new kids on the block are making waves:
- TSMC is investing more than $165 billion to build six semiconductor fabs, two advanced packaging facilities, and a major R&D center. The goal is to create a gigafab cluster to manufacture 2 nm to 4 nm chips by 20230.
- Amkor Technology is building a $2 billion advanced packaging and test facility, the largest of its kind in the U.S.
- Saras Micro Devices relocated its headquarters to Arizona and expanded its facilities, including a new clean room.
Electronics and semiconductor shippers often cite freight capacity, speed, and reliability as top concerns. Semiconductor fabs can lose hundreds of thousands of dollars per day during downtime, making speed and reliability critical. Arizona enables direct delivery to local fabs and supports rapid cross-border shipments to Mexico. Typically, cargo moves from Arizona to Mexico through the Laredo crossing in 2-3 days.
The growth of bonded warehousing near the border allows freight to be staged and ready, keeping production lines moving. Bonded warehouse services allow companies to defer duty and tax payments on goods in transit. Dimerco’s Phoenix warehouse supports in-bond shipments to reduce customs expenses.
Meanwhile, increased flight capacity into Phoenix supports consistent, predictable freight flows. China Airlines and Starlux Airlines offer nonstop flights between Phoenix and Taipei, bypassing congestion at Los Angeles International Airport. North American carriers, including American Airlines and Porter Airlines, are adding services in the U.S. and Canada.
As major semiconductor investments continue, it’s critical to work with logistics partners that provide real-time shipment visibility and proactive communication so manufacturers can stay ahead of disruptions.
Real-time visibility builds trust and reduces risk for manufacturers operating 24/7 fabs. However, strong relationships matter more than technology alone — being present and proactive is key. Dimerco supports the semiconductor industry by actively engaging with organizations such as the Arizona Tech Council and the Greater Phoenix Economic Council to strengthen ecosystem collaboration.
Cross-Border Staging Hub
The Mexican border state of Sonora and border cities like Nogales on the Arizona side form a mega-region that promotes a highly integrated supply chain for industries such as aerospace, automotive, and electronics. Firms benefit from the cost efficiencies of Mexican labor and the logistical, technical, and regulatory advantages of the U.S. market.
Arizona warehouses on the U.S. side of the border are being used to hold freight in bond before moving into Mexico. This staging model supports China Plus One strategies by keeping freight moving without unnecessary delays.
Rerouting freight through Arizona allows shippers to avoid the congestion in the Los Angeles/Long Beach market, reducing costs and delivery times. San Diego crossings are heavily burdened by commuter traffic. The border crossing at Nogales is more freight-focused, with less traffic congestion than San Diego, resulting in shorter wait times for customs inspections.
Don’t try to handle cross-border moves like domestic moves. Experienced logistics providers help navigate customs, in-bond movements, and border-specific complexities that you don’t want to learn by trial and error.
Primed for Logistics Expansion
Given Arizona’s efforts in attracting industry, it’s a prime location for distribution and manufacturing. Any industry requiring large-scale warehousing benefits from Arizona’s available land. High-tech, electronics, aerospace, and advanced manufacturing are natural fits.
It’s a smart move. Lower real estate and labor costs compared to California increase competitiveness, while a diverse workforce supports growth across multiple sectors. Living and commuting in Arizona are surprisingly cost effective and pleasant compared to Southern California.
As advanced manufacturers flock to Arizona, the transportation and logistics infrastructure is rising to meet demand.
The state’s multimodal system is expanding, with Union Pacific investing heavily in its Tucson facilities and BNFS plans a major intermodal facility on the west side of Phoenix.
A $500 million investment in technology and modernization is funding upgrades at the Douglas and San Luis ports of entry, and a new border station will rise near the existing Douglas facility.
Dimerco Logistics Services
Companies shipping between Asia, Arizona, and Mexico often require flexible, fast-changing logistics models. Success in these trade lanes requires agility and experience. Agility is most critical when shifting routings, flight capacity, or changing border strategies.
Mexico adds a layer of complexity with unique customs regulations and procedures. Shippers value experience over theory—especially for cross-border movements to Mexico.
A reliable, knowledgeable 3PL reduces the cost and disruption of change, offering peace of mind from knowing your partner understands regional nuances and regulatory requirements.
Dimerco specializes in logistics support for semiconductor and consumer electronics companies. One component of our complete supply chain solution for these industry sectors is time-critical distribution of service parts from depots across the U.S., with 4-hour delivery service levels.
If you need a freight forwarder for China and Southeast Asia to U.S. freight, Dimerco’s U.S.-based, multi-cultural, multi-lingual team interacts seamlessly with our offices in China. Our emphasis on clear, accurate communications keeps your shipments flowing.
In addition to international air and ocean services, Dimerco offers trucking and transshipping solutions to Central or South America, Mexico, and Canada. This includes advice on cross-border trucking solutions to support growing North American trade under the USMCA.
Freight Forwarding
Dimerco provides door-to-door international freight forwarding services to connect trading partners across Asia-Pacific, North America, and Europe.
Simplify your supply chain by working with one strategic partner for integrated air, ocean, road and rail freight services, as well as contract logistics.
Ocean Freight
As a top 50 ocean freight forwarder, Dimerco has earned preferred partner status with all the top Asia-based ocean carriers to access the affordable capacity you need for ocean freight shipping. Plus, enjoy the high level of personalized service you won’t get from larger forwarders.
Air Freight
Dimerco is strategically focused on sectors such as semiconductors, electronics, aerospace, medical equipment, and fashion that rely on time-critical air freight services.
Road and Rail
Road and rail services integrate seamlessly with Dimerco air, ocean and contract logistics services. You have one partner for door-to-door service wherever you need it.
Customs Clearance & Compliance
Our certified custom brokers help ensure compliance with the latest regulatory requirements, drawing on deep knowledge of Mexico’s regulations.
Secure Transit
We take security seriously at Dimerco. We offer All Risk Cargo Insurance and are CTPAT members and ISO 9001-certified in the USA.
Plug into the momentum in Arizona, which stands in contrast to mature markets like Silicon Valley. Connect with a global logistics partner with deep experience in U.S. and Mexico imports and exports. You need a partner with experience to bridge the gap between local operations and global standards while navigating the country-by-country differences.
Interested in launching or optimizing your Arizona and Mexico operations? Get in touch with a Dimerco specialist to get started.
Download our eBook, Navigating the Global Semiconductor Supply Chain, for a closer look at how chips move from blueprint to buildout.
